Income Tax Assessment Act 1997



Division 104 - CGT events  

Subdivision 104-I - Australian residency ends  

SECTION 104-170   Trust stops being a resident trust: CGT event I2  

CGT event I2 happens if a trust stops being a *resident trust for CGT purposes.

The time of the event is when the trust stops being one.


The trustee needs to work out if it has made a *capital gain or a *capital loss for each *CGT asset that it owned (in the capacity as trustee of the trust) just before the time of the event except one that is *taxable Australian property:

(a) covered by item 1 or 3 of the table in section 855-15 ; or

(b) covered by item 4 of that table because it is an option or right to *acquire a *CGT asset covered by item 1 or 3 of that table.


The trustee makes a capital gain if the *market value of the asset (at the time of the event) is more than the asset ' s *cost base. The trustee makes a capital loss if that market value is less than the asset ' s *reduced cost base.


If the asset is an *indirect Australian real property interest, or an option or right to acquire such an interest, this Part and Part 3-3 apply to the asset as if the first element of the *cost base and *reduced cost base of the asset (just after the time of the event) were its *market value at the time of the event.


Subsection (4A) does not apply if the *capital gain or *capital loss the trustee makes is disregarded under subsection (5). Exception

A *capital gain or *capital loss the trustee makes is disregarded if it *acquired the asset before 20 September 1985.


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